FP Lux Group is adding up to 90MW of Swedish solar projects to the portfolio of its third renewable energy fund RE Infrastructure Opportunities.
FP Lux acquired the solar projects from Swedish developer SunSpark Nordic.
The purchase agreement was concluded by the investment advisor re:cap global investors, which is responsible for evaluating and purchasing projects for the fund.
Under the agreement, the fund will acquire the ready-to-build solar parks and provide equity financing for construction, while SunSpark Nordic will provide long-term asset management services.
The solar parks will be built over a period of up to two years, mainly in southern Sweden, as the energy demand in this region is high and new solar parks in some municipalities can contribute to more security in the local electricity supply.
The search for suitable locations for the project has been largely completed.
The first parks will be built in the municipalities of Olofström, Karlshamn, Ronneby and Töreboda.
Thomas Seibel, CEO of re:cap, said: “Sweden is one of the most important European markets for renewable energies with a transparent regulatory system and a strongly growing demand for locally produced solar power.
“We are therefore pleased to expand our commitment in the region and to have gained a professional partner in SunSpark Nordic.”
Pontus Ringaby, CEO of SunSpark Nordic, added: “We see an increasing demand for sustainable energy solutions from Swedish companies, especially the possibility of concluding electricity contracts based on solar energy is being investigated.”
SunSpark was advised by EY on the sale.
RE Infrastructure Opportunities’ portfolio comprises more than 35 projects with a total capacity of almost 400MW.
The investment focus is on photovoltaic projects in European core markets such as Germany, Denmark, the Netherlands, France, Sweden and Spain.
The RE Infrastructure Opportunities target IRR is 7% per year after costs over a remaining fund life of approximately 12 years.